We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Weyerhaeuser (WY) to Post Q4 Earnings: What's in the Offing?
Read MoreHide Full Article
Weyerhaeuser Company (WY - Free Report) is all set to report fourth-quarter 2018 results on Feb 1, before the opening bell. The wood-based building products manufacturer delivered lower-than-expected results in two of the last four quarters, with the average negative earnings surprise being 5.8%. Moreover, in the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 28.2% and 2.6%, respectively.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 11 cents per share, trending downward over the past 30 days. This reflects a decrease of 64.5% from the year-ago earnings of 31 cents per share. Revenues are expected to be $1.8 billion, down 1.4% year over year.
Meanwhile, shares of Weyerhaeuser have declined 3% against its industry’s collective gain of 2.2% in the past three months.
Let’s See How Things are Shaping Up for This Announcement
Weyerhaeuser has been struggling with multiple headwinds of late. Severe weather conditions, uncertain Chinese trade policy, as well as unusually volatile markets for lumber and oriented strand board are expected to impact its fourth-quarter results.
For the Timberlands segment, accounting for 34.2% of revenues, Weyerhaeuser anticipates sequentially lower fourth-quarter earnings and adjusted EBITDA. In the West, results will likely suffer from increased unit-logging expenses and lower average sales realizations that are expected to be balanced by moderately higher export log sales volumes. In the South, fee harvest volumes are expected to be higher and average log sales realizations are likely to be comparable.
Weyerhaeuser’s Wood Products segment is strong, accounting for 70.5% of total net sales. At the segment, the company predicts considerably lower earnings and adjusted EBITDA on a sequential basis. Average sales realizations for lumber and oriented strand board are also expected to be lower than the third quarter.
For the Real Estate, Energy and Natural Resources segment, the company anticipates sequentially comparable earnings and adjusted EBITDA in the fourth quarter.
Overall, the company is highly focused on reducing controllable costs by improving reliability, enhancing product margins and maximizing the benefit of focused capital investment. Meanwhile, strong repair and remodeling activity, which drives about 40% of lumber demand, is expected to be beneficial for the company. Over the past nine months of 2018, repair and remodeling activity was up 7.5% from a year ago.
Meanwhile, Weyerhaeuser remains focused on operational excellence that includes merchandising for value, harvest and transportation efficiencies, along with flexing harvest to capture seasonal as well as short-term opportunities.
Our proven model does not conclusively show that Weyerhaeuser is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Weyerhaeuser currently carries a Zacks Rank #5 (Strong Sell). Notably, we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Taylor Morrison Home Corporation (TMHC - Free Report) has an Earnings ESP of +25.00% and holds a Zacks Rank #3.
Forterra, Inc. has an Earnings ESP of +8.99% and carries a Zacks Rank #2.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Weyerhaeuser (WY) to Post Q4 Earnings: What's in the Offing?
Weyerhaeuser Company (WY - Free Report) is all set to report fourth-quarter 2018 results on Feb 1, before the opening bell. The wood-based building products manufacturer delivered lower-than-expected results in two of the last four quarters, with the average negative earnings surprise being 5.8%. Moreover, in the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 28.2% and 2.6%, respectively.
How are Estimates Faring?
Let’s take a look at the estimate revision trend in order to get a clear picture of what analysts are thinking about the company prior to the earnings release. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 11 cents per share, trending downward over the past 30 days. This reflects a decrease of 64.5% from the year-ago earnings of 31 cents per share. Revenues are expected to be $1.8 billion, down 1.4% year over year.
Meanwhile, shares of Weyerhaeuser have declined 3% against its industry’s collective gain of 2.2% in the past three months.
Let’s See How Things are Shaping Up for This Announcement
Weyerhaeuser has been struggling with multiple headwinds of late. Severe weather conditions, uncertain Chinese trade policy, as well as unusually volatile markets for lumber and oriented strand board are expected to impact its fourth-quarter results.
For the Timberlands segment, accounting for 34.2% of revenues, Weyerhaeuser anticipates sequentially lower fourth-quarter earnings and adjusted EBITDA. In the West, results will likely suffer from increased unit-logging expenses and lower average sales realizations that are expected to be balanced by moderately higher export log sales volumes. In the South, fee harvest volumes are expected to be higher and average log sales realizations are likely to be comparable.
Weyerhaeuser’s Wood Products segment is strong, accounting for 70.5% of total net sales. At the segment, the company predicts considerably lower earnings and adjusted EBITDA on a sequential basis. Average sales realizations for lumber and oriented strand board are also expected to be lower than the third quarter.
For the Real Estate, Energy and Natural Resources segment, the company anticipates sequentially comparable earnings and adjusted EBITDA in the fourth quarter.
Overall, the company is highly focused on reducing controllable costs by improving reliability, enhancing product margins and maximizing the benefit of focused capital investment. Meanwhile, strong repair and remodeling activity, which drives about 40% of lumber demand, is expected to be beneficial for the company. Over the past nine months of 2018, repair and remodeling activity was up 7.5% from a year ago.
Meanwhile, Weyerhaeuser remains focused on operational excellence that includes merchandising for value, harvest and transportation efficiencies, along with flexing harvest to capture seasonal as well as short-term opportunities.
Weyerhaeuser Company Price and EPS Surprise
Weyerhaeuser Company Price and EPS Surprise | Weyerhaeuser Company Quote
What Does the Zacks Model Say?
Our proven model does not conclusively show that Weyerhaeuser is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Weyerhaeuser currently carries a Zacks Rank #5 (Strong Sell). Notably, we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Taylor Morrison Home Corporation (TMHC - Free Report) has an Earnings ESP of +25.00% and holds a Zacks Rank #3.
Forterra, Inc. has an Earnings ESP of +8.99% and carries a Zacks Rank #2.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>